Canaan (NASDAQ:CAN) Posts Earnings Results, Misses Expectations By $0.07 EPS

Canaan (NASDAQ:CAN) released its quarterly earnings data on Tuesday. The company reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.07), Zacks reports. Canaan had a negative net margin of 51.66% and a negative return on equity of 71.85%.

Here are the key takeaways from Canaan’s conference call:

• $196 million in Q4 revenue (up 30.4% QoQ and 121.1% YoY), driven by a record 14.6 exahash sold and product revenue of $165 million, topping the midpoint of guidance.
• Secured a >50,000-unit order of A15 Pro from a leading North American miner and reported the order was fully delivered by early January 2026, highlighting supply-chain execution.
• Self-mining and treasury: installed hash rate reached ~9.91 EH (7.7 EH energized), mined ~300 BTC in Q4, and year-end holdings were 1,750 BTC and 3,961 ETH (≈$166M), providing liquidity but subject to price volatility.
• Margins and non-cash charges pressured results: a $13.9 million inventory write-down, ~$44 million fair-value loss on crypto plus $15 million on preferred share conversion contributed to an adjusted EBITDA loss of $40.5 million.
• 2026 strategy centers on securing direct U.S. power capacity (targeting potential gigawatt-scale load by year-end 2026), exploring AI HPC co-location, and scaling 2C/SMB channels—long-term growth aims but execution and capital discipline are emphasized; Q1 revenue guide is $60–70 million.

Canaan Trading Up 2.2%

Shares of NASDAQ:CAN traded up $0.01 on Tuesday, reaching $0.62. 5,118,798 shares of the company’s stock were exchanged, compared to its average volume of 19,052,402. Canaan has a twelve month low of $0.50 and a twelve month high of $2.22. The company has a fifty day moving average of $0.78 and a 200-day moving average of $0.92. The company has a market capitalization of $231.20 million, a price-to-earnings ratio of -0.91 and a beta of 2.85.

Institutional Investors Weigh In On Canaan

An institutional investor recently raised its position in Canaan stock. Goldman Sachs Group Inc. grew its position in Canaan Inc. Sponsored ADR (NASDAQ:CAN) by 52.0% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 587,451 shares of the company’s stock after buying an additional 200,869 shares during the quarter. Goldman Sachs Group Inc. owned 0.21% of Canaan worth $516,000 as of its most recent SEC filing. 70.14% of the stock is owned by hedge funds and other institutional investors.

Canaan announced that its board has initiated a share buyback plan on Wednesday, December 17th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on CAN. B. Riley Financial cut their target price on shares of Canaan from $3.00 to $2.50 and set a “buy” rating for the company in a research note on Friday, November 21st. Wall Street Zen cut Canaan from a “hold” rating to a “sell” rating in a research report on Saturday, January 17th. Rosenblatt Securities reduced their target price on Canaan from $4.00 to $2.50 and set a “buy” rating for the company in a research note on Monday. BTIG Research reiterated a “buy” rating on shares of Canaan in a report on Friday, January 16th. Finally, Benchmark increased their price objective on shares of Canaan from $2.00 to $4.00 and gave the company a “buy” rating in a research report on Thursday, October 23rd. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Canaan currently has a consensus rating of “Moderate Buy” and an average price target of $2.75.

About Canaan

Canaan Inc is a China-based technology company specializing in the design and manufacture of high-performance computing hardware for the digital currency and blockchain industry. The company’s core business revolves around application-specific integrated circuit (ASIC) miners, which are purpose-built machines optimized for cryptocurrency mining. By focusing on energy efficiency and processing power, Canaan’s mining rigs aim to deliver competitive hash rates while managing power consumption in large-scale operations.

The flagship product line, known as AvalonMiner, encompasses a range of models tailored to different scales of mining activity, from small-scale hobbyist setups to industrial farms.